Princes House was constructed in the mid-1960s and is the former home of Lloyds Banking Group, and more recently Barclays, which has moved to a new Glasgow HQ. The building occupies a prominent corner plot on Waterloo Street and West Campbell Street.
Garroch Investments, advised by property firm Savills has acquired the building for an undisclosed sum.
The firm plans to redevelop it into a “class-leading Grade A office with the highest environmental credentials offering the city much needed new accommodation”. The proposals will be subject to planning permission.
It is hoped that up to 1,200 workers can be accommodated with the project creating an end value in the order of £75 million, though it comes against a backdrop of increased home and hybrid working patterns.
Andrew White, development manager and shareholder in Garroch Investments, said: “I have been looking for an office development opportunity in Glasgow for the last couple of years, and I am delighted that, with Savills assistance, Garroch has been able to secure such a prime opportunity in the current development cycle where there is such a shortage of Grade A accommodation.”
During the course of the transaction, the lease expired and the building became vacant. Clutha Trust will be occupying the whole building until the period to demolition and has agreed a short-term letting at a nominal rent.
White added: “Over the course of the transaction the building became vacant and we are delighted to have had the opportunity to support local charities through Clutha Trust.”
Stuart Orr, director in the investment team at Savills Glasgow, said: “Much focus and discussion on offices has centred on the ESG [environmental, social and governance] agenda recently.
“Subject to securing the necessary planning permission, it is Garroch’s vision to help provide a solution with a brand new building meeting the highest environmental credentials and providing the city with much needed new stock.”
Savills acted for Garroch Investments, whilst the vendor was represented by Gerald Eve. Mosaic Architects has been appointed as architect to the project.